Do Perceived Security and Financial Literacy Affect the Use of Financial Technology?
Abstract
The purpose of this study is to demonstrate the variables that affect college students’ use of financial technology (Fintech). The use of fintech in financial transactions is an interesting topic to discuss, but previous research in this topic is still debatable, so further study is needed. This research adopts the Technology Acceptance Model (TAM) theory. This study is a quantitative research with a research sample of 397 out of 45,713 population of Sebelas Maret University students taken by purposive sampling technique. Collecting data with a google forms questionnaire. The data analysis technique uses instrument validity and reliability tests, multicollinearity test, goodness of fit test, and Hierarchical Regression Analysis with SmartPLS software. The study's findings suggest that perceived security and financial literacy positively and significantly influence perceived usefulness; perceived security and financial literacy positively and significantly influence perceived ease of use; perceived security, financial literacy, perceived usefulness, and perceived ease of use positively and significantly influence the use of fintech. In addition, perceived usefulness and ease of use partially mediate the relationship between perceived security and financial literacy on fintech usage. This research helps Fintech service providers to improve fintech security and encourages students to improve financial literacy.
References
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Qi, J., Chatterjee, S., Worthy, S., Herndon, K., & Wojdynski, B. (2024). Using an extended post-acceptance framework to examine consumer adoption of fintech. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-10-2022-0448
Ryu, H.-S. (2018). What makes users willing or hesitant to use Fintech?: the moderating effect of user type. Industrial Management & Data Systems, 118(3), 541–569. https://doi.org/10.1108/IMDS-07-2017-0325
Sarkar, S., Chauhan, S., & Khare, A. (2020). A meta-analysis of antecedents and consequences of trust in mobile commerce. In International Journal of Information Management (Vol. 50, pp. 286–301). Elsevier Ltd. https://doi.org/10.1016/j.ijinfomgt.2019.08.008
Setiawan, B., Nugraha, D. P., Irawan, A., Nathan, R. J., & Zoltan, Z. (2021). User innovativeness and fintech adoption in indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 7(3). https://doi.org/10.3390/joitmc7030188
Singh, S., Sahni, M. M., & Kovid, R. K. (2020). What drives FinTech adoption? A multi-method evaluation using an adapted technology acceptance model. Management Decision, 58(8), 1675–1697. https://doi.org/10.1108/MD-09-2019-1318
Stewart, H., & Jürjens, J. (2018). Data security and consumer trust in FinTech innovation in Germany. Information and Computer Security, 26(1), 109–128. https://doi.org/10.1108/ICS-06-2017-0039
Venkatesh, V., & Davis, F. D. (2000). Theoretical extension of the Technology Acceptance Model: Four longitudinal field studies. Management Science, 46(2), 186–204. https://doi.org/10.1287/mnsc.46.2.186.11926
Venkatesh, V., Morris, M., Davis, G., & Davis, F. (2003). User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27(3), 425. https://doi.org/10.2307/30036540
Venkatesh, V., Walton, S. M., Thong, J. Y. L., & Xu, X. (2012). CONSUMER ACCEPTANCE AND USE OF INFORMATION TECHNOLOGY: EXTENDING THE UNIFIED THEORY OF ACCEPTANCE AND USE OF TECHNOLOGY. In MIS Quarterly (Vol. 36, Issue 1). http://ssrn.com/abstract=2002388
Asosiasi Fintech Indonesia. (2023). ANNUAL MEMBERS SURVEY 2022/2023.
Bergmann, M., Maçada, A. C. G., de Oliveira Santini, F., & Rasul, T. (2023). Continuance intention in financial technology: a framework and meta-analysis. In International Journal of Bank Marketing (Vol. 41, Issue 4, pp. 749–786). Emerald Publishing. https://doi.org/10.1108/IJBM-04-2022-0168
Chen, H., & Volpe, R. (1998). An analysis of personal financial literacy among college students. Financial Services Review, 7(2), 107–128. https://doi.org/10.1016/s1057-0810(99)80006-7
Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319. https://doi.org/10.2307/249008
Fan, J., Shao, M., Li, Y., & Huang, X. (2018). Understanding users’ attitude toward mobile payment use: A comparative study between China and the USA. Industrial Management and Data Systems, 118(3), 524–540. https://doi.org/10.1108/IMDS-06-2017-0268
Foster, B., Sukono, & Johansyah, M. D. (2022). Analysis of the effect of financial literacy, practicality and consumer lifestyle on the use of chip‐based electronic money using sem. Sustainability (Switzerland), 14(1). https://doi.org/10.3390/su14010032
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Springer International Publishing. https://doi.org/10.1007/978-3-030-80519-7
Hastings, J. S., Madrian, B. C., & Skimmyhorn, W. L. (2013). Financial literacy, financial education, and economic outcomes. Annual Review of Economics, 5(1), 347–373. https://doi.org/10.1146/annurev-economics-082312-125807
Li, J., Li, Q., & Wei, X. (2020). Financial literacy, household portfolio choice and investment return. Pacific Basin Finance Journal, 62. https://doi.org/10.1016/j.pacfin.2020.101370
Lo Prete, A. (2022). Digital and financial literacy as determinants of digital payments and personal finance. Economics Letters, 213. https://doi.org/10.1016/j.econlet.2022.110378
Long, T. Q., Morgan, P. J., & Yoshino, N. (2023). Financial literacy, behavioral traits, and ePayment adoption and usage in Japan. Financial Innovation, 9(1). https://doi.org/10.1186/s40854-023-00504-3
Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss Journal of Economics and Statistics, 155(1). https://doi.org/10.1186/s41937-019-0027-5
Nandru, P., Chendragiri, M., & S.A, S. (2023). Factors affecting the adoption of mobile payment services during the COVID-19 pandemic: an application of extended UTAUT2 model. Journal of Science and Technology Policy Management. https://doi.org/10.1108/JSTPM-03-2023-0044
Nguyen, T. T., Tran, T. N. H., Do, T. H. M., Dinh, T. K. L., Nguyen, T. U. N., & Dang, T. M. K. (2024). Digital literacy, online security behaviors and E-payment intention. Journal of Open Innovation: Technology, Market, and Complexity, 10(2). https://doi.org/10.1016/j.joitmc.2024.100292
Nguyen, Y. T. H., Tapanainen, T., & Nguyen, H. T. T. (2022). Reputation and its consequences in Fintech services: the case of mobile banking. International Journal of Bank Marketing, 40(7), 1364–1397. https://doi.org/10.1108/IJBM-08-2021-0371
Nikkhah, H. R., & Sabherwal, R. (2022). Information disclosure willingness and mobile cloud computing collaboration apps: the impact of security and assurance mechanisms. Information Technology and People, 35(7), 1855–1883. https://doi.org/10.1108/ITP-12-2019-0630
Palanisamy, R., & Wu, Y. (2021). Users’ attitude on perceived security of enterprise systems mobility: an empirical study. Information and Computer Security, 29(1), 159–186. https://doi.org/10.1108/ICS-05-2020-0069
Putri, G. A., Widagdo, A. K., & Setiawan, D. (2023). Analysis of financial technology acceptance of peer to peer lending (P2P lending) using extended technology acceptance model (TAM). Journal of Open Innovation: Technology, Market, and Complexity, 9(1). https://doi.org/10.1016/j.joitmc.2023.100027
Qi, J., Chatterjee, S., Worthy, S., Herndon, K., & Wojdynski, B. (2024). Using an extended post-acceptance framework to examine consumer adoption of fintech. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-10-2022-0448
Ryu, H.-S. (2018). What makes users willing or hesitant to use Fintech?: the moderating effect of user type. Industrial Management & Data Systems, 118(3), 541–569. https://doi.org/10.1108/IMDS-07-2017-0325
Sarkar, S., Chauhan, S., & Khare, A. (2020). A meta-analysis of antecedents and consequences of trust in mobile commerce. In International Journal of Information Management (Vol. 50, pp. 286–301). Elsevier Ltd. https://doi.org/10.1016/j.ijinfomgt.2019.08.008
Setiawan, B., Nugraha, D. P., Irawan, A., Nathan, R. J., & Zoltan, Z. (2021). User innovativeness and fintech adoption in indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 7(3). https://doi.org/10.3390/joitmc7030188
Singh, S., Sahni, M. M., & Kovid, R. K. (2020). What drives FinTech adoption? A multi-method evaluation using an adapted technology acceptance model. Management Decision, 58(8), 1675–1697. https://doi.org/10.1108/MD-09-2019-1318
Stewart, H., & Jürjens, J. (2018). Data security and consumer trust in FinTech innovation in Germany. Information and Computer Security, 26(1), 109–128. https://doi.org/10.1108/ICS-06-2017-0039
Venkatesh, V., & Davis, F. D. (2000). Theoretical extension of the Technology Acceptance Model: Four longitudinal field studies. Management Science, 46(2), 186–204. https://doi.org/10.1287/mnsc.46.2.186.11926
Venkatesh, V., Morris, M., Davis, G., & Davis, F. (2003). User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27(3), 425. https://doi.org/10.2307/30036540
Venkatesh, V., Walton, S. M., Thong, J. Y. L., & Xu, X. (2012). CONSUMER ACCEPTANCE AND USE OF INFORMATION TECHNOLOGY: EXTENDING THE UNIFIED THEORY OF ACCEPTANCE AND USE OF TECHNOLOGY. In MIS Quarterly (Vol. 36, Issue 1). http://ssrn.com/abstract=2002388
Published
2024-10-08
How to Cite
FEBRIANTI, Fatimah; SABANDI, Muhammad.
Do Perceived Security and Financial Literacy Affect the Use of Financial Technology?.
Soedirman Economics Education Journal, [S.l.], v. 6, n. 2, p. 95-114, oct. 2024.
ISSN 2686-6277.
Available at: <https://jos.unsoed.ac.id/index.php/seej/article/view/12812>. Date accessed: 24 apr. 2025.
doi: https://doi.org/10.32424/seej.v6i2.12812.
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